Brazil Makes History: World's First Spot XRP ETF Gets Regulatory Approval

Brazil is on the cusp of becoming the first nation to introduce a spot XRP exchange-traded fund (ETF) after Hashdex secured authorization from the country's securities regulator. The Hashdex Nasdaq XRP Index Fund has now moved into its pre-operational phase, as acknowledged by Brazil’s Securities and Exchange Commission (CVM).

While the official launch date remains undisclosed, the fund is set to be listed on Brazil’s B3 exchange. This approval is a notable achievement for both Brazil's cryptocurrency market and the global XRP community.

In contrast to futures-based ETFs, a spot XRP ETF directly invests in the underlying asset—XRP—offering investors direct exposure. This development is anticipated to draw interest from both institutional and retail investors, enhancing the asset’s credibility and liquidity.

Brazil's move comes as several other jurisdictions, including the United States, consider similar financial products. The US Securities and Exchange Commission (SEC) has recently reviewed a spate of applications for spot XRP ETFs from major firms like 21Shares, Bitwise, Grayscale, and CoinShares. Although these applications are still under review, their consideration indicates a shift in regulatory perspectives toward cryptocurrencies. This shift aligns with changes in the US regulatory landscape following President Donald Trump's reelection, who is regarded as a supporter of digital currencies.

President Donald Trump recently announced: "I have signed executive orders to keep the United States at the forefront of artificial intelligence and to end Joe Biden’s war on Bitcoin and crypto. We ended that war totally, that war is over!" The ongoing SEC versus Ripple case is nearing its conclusion.

Under Trump's administration, the SEC has committed to providing clearer guidelines on digital assets. A newly established crypto task force is working to determine which cryptocurrencies do not qualify as securities, potentially offering simpler regulatory pathways for initiatives like XRP.

Following the announcement of Brazil's potential launch of the world's first spot XRP ETF, XRP's market performance has improved. Over the past day, XRP's price rose by 4.5%, reaching $2.74 at the time of reporting. Although this price increase has placed XRP's weekly performance in positive territory, it is insufficient to completely reverse its recent bearish trend.

In a broader view, XRP remains down by 12.6% over the past month and approximately 19.7% from its all-time high of $3.40 recorded in 2018.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.